Systems and methods for incorporating qr codes

ABSTRACT

Systems and methods for facilitating payment transactions using quick-response (QR) codes are provided. A first machine readable code encoding first data generated by an access device is scanned by a communication device. The communication device generates a cryptogram based on the first data encoded within the first machine readable code. The communication device then obtains financial credentials data from a payment application being executed on the communication device. A second machine readable code encoding second data comprising the financial credentials data and the cryptogram is then generated. The second machine readable code is displayed on a display of the communication device, wherein the second machine readable code is scanned by the access device.

CROSS-REFERENCES TO RELATED APPLICATIONS

This application is a non-provisional application of and claims thebenefit of priority to U.S. Provisional Application No. 61/882,513,filed on Sep. 25, 2013, which is herein incorporated by reference in itsentirety for all purposes.

BACKGROUND

The use of QR codes in payment environments has gained increasedattention in the last few years as an alternative to near fieldcommunication (NFC) based payment technologies. Many large retailershave already implemented QR code payment environments.

Current QR solutions encode customer financial data and display thecorresponding QR codes on the user's communication device to scan at aPOS terminal. However, the QR codes can be copied by fraudsters and canbe replayed at other POS terminals, thereby creating security risks.

It would be desirable to provide for a payment method that can utilizemachine readable codes, while improving transaction security.Embodiments of the invention address this and other problems,individually and collectively.

BRIEF SUMMARY

In some embodiments of the invention, a systems and methods forincorporating QR codes in payment transactions are provided. The systemsand methods provide a platform that can be leveraged by various entitiessuch as third party wallet providers, merchants, acquirers, paymentprocessors, etc. that use QR codes to facilitate payment transactions.In the QR code based system, an access device can generate a QR code atthe time of the payment transaction. The generated QR code can encodevarious data pertinent to the transaction, such as the transactionamount, a merchant identifier, a random number, and/or any relevantcoupon data. A user may scan the generated code with his/hercommunication device and the communication device may in turn generateanother QR code based on a cryptogram, financial data associated withthe user, and the random number decoded from the access device generatedQR code. The communication device generated QR code can be scanned atthe access device and the access device can format the relevant datafrom the QR code into a standard authorization request message to besent to an issuer.

One embodiment of the invention is directed to a method comprisingscanning, via a communication device, a first machine readable codeencoding first data generated by an access device. The method alsoincludes generating, via the communication device, a cryptogram based onthe first data encoded within the first machine readable code. Themethod further includes obtaining, via the communication device,financial credentials data from a payment application being executed onthe communication device. The method additionally includes generating,via the communication device, a second machine readable code encodingsecond data comprising the financial credentials data and thecryptogram. The method further includes displaying on a display of thecommunication device the second machine readable code, wherein thesecond machine readable code is scanned by the access device.

In some embodiments, the first data comprises at least one of atransaction amount, a random number, or coupon data.

In some embodiments, the first machine readable code is displayed on adisplay of the access device.

In some embodiments, obtaining the financial credentials from the secureapplication comprises communicating the first data encoded within thefirst machine readable code to the secure application and obtaining thefinancial credentials from a secure element within the communicationdevice.

In some embodiments, the financial credentials data comprises a tokenassociated with a primary account number (PAN).

In some embodiments, obtaining the financial credentials data comprisesobtaining the financial credentials data from a server computer.

In some embodiments, the access device is a point-of-sale (POS) device.

In some embodiments, the secure application is a digital walletapplication associated with a digital wallet provider.

In some embodiments, the first machine readable code and the secondmachine readable code are quick response (QR) codes.

In some embodiments, the second data further comprises biometric dataassociated with a user of the communication device.

Other embodiments of the invention are directed to communicationdevices, servers, and systems that are configured to perform theabove-described methods.

These and other embodiments of the invention are described in furtherdetail below.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 shows a block diagram of a typical transaction processing systemfor electronic payment transactions using issuer accounts, in accordancewith some embodiments of the invention.

FIG. 2 shows a block diagram of a communication device, in accordancewith some embodiments of the invention.

FIG. 3 shows a block diagram of an access device, in accordance withsome embodiments of the invention.

FIG. 4 shows a flow diagram for an exemplary flow for a paymenttransaction including the use of a machine readable code, in accordancewith some embodiments of the invention.

FIG. 5 shows a flow diagram for another exemplary flow for a paymenttransaction including the use of a machine readable code, in accordancewith some embodiments of the invention.

FIG. 6A shows an access device displaying a QR code usable in a paymenttransaction, in accordance with some embodiments of the invention.

FIG. 6B shows a communication device displaying a QR code usable in apayment transaction, in accordance with some embodiments of theinvention.

FIG. 7 shows a flowchart of an exemplary method of conducting a paymenttransaction using QR codes.

FIG. 8 shows a block diagram of a computer apparatus.

DETAILED DESCRIPTION

Embodiments are directed at systems, methods, and devices for using QRcodes in payment transactions. As explained above, QR codes can encodefinancial transaction data and other transaction security data. A QRcode can be used to initiate transaction activity. Two-way communicationusing QR codes can also improve transaction security.

Prior to discussing embodiments of the invention, descriptions of someterms may be helpful in understanding embodiments of the invention.

A “token” may include any identifier for a payment account that is asubstitute for an account identifier. For example, a token may include aseries of alphanumeric characters that may be used as a substitute foran original account identifier. For example, a token “4900 0000 00000001” may be used in place of a primary account identifier or primaryaccount number (PAN) “4147 0900 0000 1234.” In some embodiments, a tokenmay be “format preserving” and may have a numeric format that conformsto the account identifiers used in existing payment processing networks(e.g., ISO 8583 financial transaction message format). In someembodiments, a token may be used in place of a PAN to initiate,authorize, settle or resolve a payment transaction or represent theoriginal credential in other systems where the original credential wouldtypically be provided. In some embodiments, a token value may begenerated such that the recovery of the original PAN or other accountidentifier from the token value may not be computationally derived.Further, in some embodiments, the token format may be configured toallow the entity receiving the token to identify it as a token andrecognize the entity that issued the token.

“Authentication” is a process by which the credential of an endpoint(including but not limited to applications, people, devices, processes,and systems) can be verified to ensure that the endpoint is who they aredeclared to be.

An “original” transaction may include any transaction including anauthorization provided by an issuer or an authorization providedon-behalf-of an issuer.

A “substitute” transaction may be any transaction that is associatedwith an original transaction and that takes place after the originaltransaction, including repeat, refunds, reversals or exceptions(chargebacks, re-presentments, etc.).

An “end-user” may include any application, device, consumer, or systemthat is configured to interact with a requestor fortokenization/de-tokenization/token management services. For example, anend-user may include a consumer, a merchant, a mobile device, or anyother suitable entity that may be associated with a requestor in thenetwork token system.

A “consumer” may include an individual or a user that may be associatedwith one or more personal accounts and/or consumer devices. The consumermay also be referred to as a cardholder, accountholder, or user.

A “card-on-file (COF)” holder may include any entities that storeaccount details (e.g., card details, payment account identifiers, PANs,etc.) for use in transactions. For example, a COF entity may storepayment information on file for various types of periodic payments suchas monthly utility payments, periodic shopping transactions, or anyother periodic or future transaction. Because payment credentials and/orassociated tokens are stored at an entity for a future transaction, thetransactions initiated by a COF entity include card-not-present (CNP)transactions. Another type of card-not-present (CNP) transactionincludes e-commerce or electronic commerce transactions that areinitiated between remote parties (e.g., a consumer device and a merchantweb server computer).

An “authorization request message” may be an electronic message that issent to a payment processing network and/or an issuer of a paymentaccount to request authorization for a transaction. An authorizationrequest message according to some embodiments may comply with ISO 8583,which is a standard for systems that exchange electronic transactioninformation associated with a payment made by a consumer using a paymentdevice or a payment account. In some embodiments of the invention, anauthorization request message may include a payment token, an expirationdate, a token presentment mode, a token requestor identifier, anapplication cryptogram, and an assurance level data. The payment tokenmay include a payment token issuer identifier that may be a substitutefor a real issuer identifier for an issuer. For example, the real issueridentifier may be part of a BIN range associated with the issuer. Anauthorization request message may also comprise additional data elementscorresponding to “identification information” including, by way ofexample only: a service code, a CVV (card verification value), a dCVV(dynamic card verification value), an expiration date, etc. Anauthorization request message may also comprise “transactioninformation,” such as any information associated with a currenttransaction, such as the transaction amount, merchant identifier,merchant location, etc., as well as any other information that may beutilized in determining whether to identify and/or authorize atransaction.

An “authorization response message” may be an electronic message replyto an authorization request message generated by an issuing financialinstitution or a payment processing network. The authorization responsemessage may include an authorization code, which may be a code that acredit card issuing bank returns in response to an authorization requestmessage in an electronic message (either directly or through the paymentprocessing network) to the merchant's access device (e.g. POS terminal)that indicates approval of the transaction. The code may serve as proofof authorization. As noted above, in some embodiments, a paymentprocessing network may generate or forward the authorization responsemessage to the merchant.

A “server computer” may typically be a powerful computer or cluster ofcomputers. For example, the server computer can be a large mainframe, aminicomputer cluster, or a group of servers functioning as a unit. Theserver computer may be associated with an entity such as a paymentprocessing network, a wallet provider, a merchant, an authenticationcloud, an acquirer or an issuer.

“Machine readable code” can be any encoded image readable by acommunication device or any other computing device. The machine readablecode can be read by a device by, e.g., scanning the code with a cameradevice that is part of, or attached to, the device. Examples of machinereadable code including quick response codes and SnapTags.

A “quick response” code or “QR code” may be a matrix barcode and a typeof machine readable code that contains information (e.g., informationpertaining to a payment transaction). A typical QR code may use fourstandardized encoding modes (numeric, alphanumeric, byte/binary, andkanji) to efficiently store data.

A “cryptogram” may be a uniquely signed digital payload associated witha primary account number (PAN) or token. The cryptogram may uniquelyidentify the device that emulated the payment card and is a form ofvalidation. The cryptogram may be uniquely generated for every paymenttransaction.

“Financial credentials” can include a PAN, token, or any otherrepresentation that identifies a payment account associated with a user.

A “secure element” can be a dynamic environment in which applicationcode and application data can be securely stored and administered andwhich secure execution of applications occur. The secure element canreside in highly secure crypto chips. The financial credentials can bestored within the secure element.

An “access device” can be any point that enables a customer makes apayment to a merchant in exchange for goods or services. An accessdevice can be any equipment including hardware, software, or acombination thereof, that can be used to initiate a transfer of funds.An example of an access device is a point-of-sale (POS) device or acommunication device.

“Biometric data” includes data that can be used to uniquely identify anindividual based upon one or more intrinsic physical or behavioraltraits. For example, biometric data may include fingerprint data andretinal scan data. Further examples of biometric data include digitalphotographic data (e.g., facial recognition data), deoxyribonucleic acid(DNA) data, palm print data, hand geometry data, and iris recognitiondata,

A “digital wallet provider” may include any suitable entity thatprovides a digital wallet service. A digital wallet provider may providesoftware applications that store account numbers, account numbersincluding unique identifiers, or representations of the account numbers(e.g., tokens), on behalf of an account holder to facilitate payments atmore than one unrelated merchant, perform person-to-person payments, orload financial value into the digital wallet.

“Contactless” or “wireless” can include any communication method orprotocol, including proprietary protocols, in which data is exchangedbetween two devices without the need for the two devices to bephysically coupled. For example, “contactless” or “wireless” can includeradio frequency (RF), infrared, laser, or any other communication means,and the use of any protocols, such as proprietary protocols, with suchcommunication means.

I. Exemplary Systems

FIG. 1 shows a block diagram of a typical transaction processing system100 configured to use real issuer identifiers (e.g., bank identificationnumbers (BINs)) to route authorization request messages duringtransaction processing. For example, payment credentials issued forconsumers may include real issuer identifiers (e.g., BINs) that may beused to identify the issuer (and payment processing network) associatedwith the account being used to initiate the transaction.

The system 100 may include a communication device 110, an access device120, a merchant computer 125, an acquirer computer 130, a paymentprocessing network computer 140 and an issuer computer 150. In someimplementations, different entities in FIG. 1 may communicate with eachother using one or more communication networks such as the Internet, acellular network, a TCP/IP network or any other suitable communicationnetwork. Note that one or more entities in the system 100 may beassociated with a computer apparatus that may be implemented using someof the components as described with reference to FIG. 7.

The communication device 120 may be associated with a payment account ofa user. In some implementations, the communication device 120 may be amobile device such as a mobile phone, a tablet, a PDA, a notebook, a keyfob or any suitable mobile device. For example, the communication device120 may include a wallet or a payment application that may be associatedwith one or more payment accounts of the user. In some implementations,the communication device 120 may be configured to display a machinereadable code (e.g., QR™ code, bar code, etc.). The communication device120 may also include a camera or a scanning device capable of scanning amachine readable code. In some implementations, the communication device120 may be capable of communicating with the access device 120 using ashort range communication technology such as NFC. For example, thecommunication 110 may interact with the access device 130 by tapping orwaving the consumer device 120 in proximity of the access device 130. Insome implementations, the communication device 120 may be a payment cardsuch as a credit card, debit card, prepaid card, loyalty card, giftcard, etc.

The access device 120 may be an access point to a transaction processingsystem that may comprise the acquirer computer 130, the paymentprocessing network computer 140, and the issuer computer 150. In someimplementations, the access device 120 may be associated with oroperated by the merchant computer 125. For example, the access device120 may be a point of sale device that may include a contactless reader,an electronic cash register, a display device, etc. In someimplementations, the access device 120 may be configured to displaytransaction information in a format that may be read by thecommunication device 110 (e.g., mobile phone) including a QR™ code, barcode, or any other information transfer mechanism. In someimplementations, the access device 120 may be a personal computer thatmay be used by the user to initiate a transaction with the merchantcomputer 125 (e.g., an online transaction).

The merchant computer 125 may be associated with a merchant. In someembodiments, the merchant computer 125 may be associated with acard-on-file (COF) merchant. For example, the card-on-file merchant maystore consumer account information on file (e.g., at a merchantdatabase) for future payment purposes such as various types of periodicpayments (e.g., monthly utilities payments). In some implementations, aconsumer may register with one or more merchants for card-on-fileservices. The merchant computer 125 may be configured to generate anauthorization request for a transaction initiated by the user using theaccess device 120.

The acquirer computer 130 may represent a traditional acquirer/acquirerprocessor. The acquirer is typically a system for an entity (e.g., abank) that has a business relationship with a particular merchant, awallet provider or another entity. The acquirer computer 130 may becommunicatively coupled to the merchant computer 125 and the paymentprocessing network 140 and may issue and manage a financial account forthe merchant. The acquirer computer 130 may be configured to route theauthorization request for a transaction to the issuer computer 150 viathe payment processing network computer 140 and route an authorizationresponse received via the payment processing network computer 140 to themerchant computer 125.

The payment processing network computer 140 may be configured to provideauthorization services, and clearing and settlement services for paymenttransactions. The payment processing network computer 140 may includedata processing subsystems, wired or wireless networks, including theinternet. An example of the payment processing network computer 140includes VisaNet™, operated by Visa®. Payment processing networks suchas VisaNet™ are able to process credit card transactions, debit cardtransactions, and other types of commercial transactions. VisaNet™, inparticular includes a Visa Integrated Payments (VIP) system whichprocesses authorization requests and a Base II system which performsclearing and settlement services. The payment processing networkcomputer 140 may include a server computer. In some implementations, thepayment processing network computer 140 may forward an authorizationrequest received from the acquirer computer 130 to the issuer computer150 via a communication channel. The payment processing network computer140 may further forward an authorization response message received fromthe issuer computer 150 to the acquirer computer 130.

The issuer computer 150 may represent an account issuer and/or an issuerprocessor. Typically, the issuer computer 150 may be associated with abusiness entity (e.g., a bank) that may have issued an account and/orpayment card (e.g., credit account, debit account, etc.) for paymenttransactions. In some implementations, the business entity (bank)associated with the issuer computer 150 may also function as an acquirer(e.g., the acquirer computer 130).

The various entities in the system 100 may communicate with each othervia an interconnected network 160, e.g., the Internet.

FIG. 2 shows a block diagram of a communication device, in accordancewith some embodiments of the invention. Communication device 110includes a processor 210, a camera 220, a display 230, an input device240, a speaker 250, a memory 260, a computer-readable medium 270, and asecure element 280.

Processor 210 may be any suitable processor operable to carry outinstructions on the communication device 110. The processor 210 iscoupled to other units of the communication device 110 including camera220, display 230, input device 240, speaker 250, memory 260, andcomputer-readable medium 270.

Camera 220 may be configured to capture one or more images via a lenslocated on the body of communication device 110. The captured images maybe still images or video images. The camera 220 may include a CMOS imagesensor to capture the images. Various applications (e.g., mobileapplication 272) running on processor 210 may have access to camera 220to capture images. It can be appreciated that camera 220 cancontinuously capture images without the images actually being storedwithin communication device 110. Captured images may also be referred toas image frames. In some embodiments, camera 220 may be configured tocapture images of a machine readable code, e.g., a QR code.

Display 230 may be any device that displays information to a user.Examples may include an LCD screen, CRT monitor, or seven-segmentdisplay.

Input device 240 may be any device that accepts input from a user.Examples may include a keyboard, keypad, mouse, or microphone. In thecase of a microphone, the microphone may be any device that convertssound to an electric signal. In some embodiments, the microphone may beused to capture one or more voice segments from a user.

Speaker 250 may be any device that outputs sound to a user. Examples mayinclude a built-in speaker or any other device that produces sound inresponse to an electrical audio signal. In some embodiments, speaker 250may be used to request the user for a voice sample for purposes ofauthentication.

Memory 260 may be any magnetic, electronic, or optical memory. It can beappreciated that memory 260 may include any number of memory modules. Anexample of memory 260 may be dynamic random access memory (DRAM).

Computer-readable medium 270 may be any magnetic, electronic, optical,or other computer-readable storage medium. Computer-readable storagemedium 270 includes voice data capture module 272 and voice datatransmission module 274. Computer-readable storage medium 270 maycomprise any combination of volatile and/or non-volatile memory such as,for example, buffer memory, RAM, DRAM, ROM, flash, or any other suitablememory device, alone or in combination with other data storage devices.

Mobile application 272 can be any application executable by processor210 on the communication device 110. In some embodiments, the mobileapplication 272 can be a secure application for facilitating paymenttransactions using the communication device 110. For example, the mobileapplication 272 can be a digital wallet application. The mobileapplication 272 can interface with the secure element 280 to obtain thefinancial credentials 281 associated with the user. The mobileapplication 272 may contain, but is not limited to, the following corepieces: (1) a payment library including code for enabling paymentsincluding selecting and presenting the secure element 280 to the accessdevice 120; (2) a proxy applet managed by a service provider thatmanages secure communications between the secure element 280 and atrusted service manager to execute account provisioning and accountmanagement commands; and (3) a contactless gateway library that includescode for enabling secure communication between the secure element 10(b)and a payment processor's contactless gateway.

QR reader module 274 may be configured to read and interpret a QR code.The QR reader module 274 may interface with camera 220 to capture or“scan” a presented QR code on e.g., an access device. Upon capturing orscanning the presented QR code, the QR reader module 274 can interpretthe QR code and convert it to useful information. For example, the QRreader module 274 can interpret a QR code scanned off an access deviceand determine the relevant transaction information associated with thetransaction (e.g., payment amount, merchant information, couponinformation, random number, etc.).

QR generator module 276 may be configured to generate a QR code. The QRgenerator module 276 may interface with the mobile application 272 andcryptogram generation module 278 to generate a QR code that can bescanned by an access device. For example, the generated QR code caninclude the financial credentials 281 (as obtained by the mobileapplication 272), a cryptogram generated by the cryptogram generationmodule 278, and any other information pertinent to a paymenttransaction.

Secure element 280 may be a secure, tamper-resistant, storage andexecution environment that various payment assets such as financialcredentials 281. The secure element 280 can act as a contactless frontend by using a communication channel with the mobile application 272.The secure element 280 may be composed of a combination of an integratedcircuit and an operating system. The secure element 280 may also containa secure applet that may be selected by the access device 120 andpresents any available mobile contactless payment information to theaccess device 120.

FIG. 3 shows a block diagram of an access device 120, in accordance withsome embodiments of the invention. Access device 120 may comprise aprocessor 310. It may also comprise a computer-readable medium 312, akeypad 314, a magnetic strip reader 316, an output device 318, a networkinterface 320, and an antenna 322. All of these elements may beoperatively coupled to processor 310. A housing 324 may also house oneor more of these components.

Computer-readable medium 312 may include one or more memory chips, diskdrives, etc. Computer-readable medium 312 may store code or instructionsfor allowing merchant access device 300 to operate in the mannerdescribed herein. The instructions may be executed by processor 310. Thecomputer-readable medium 312 may include one or more memory chips, diskdrives, etc. Computer-readable medium 312 may store code or instructionsfor allowing access device 120 to operate in the manner describedherein. The instructions may be executed by processor 310.Computer-readable medium 312 may further comprise any suitable modules.

QR generator module 313 may be configured to generate a QR code. The QRcode may be generated by the QR generator module 313 and displayed viaoutput device 318 on the access device 120. The displayed QR code may beread or “scanned” by communication device 110. The generated QR code mayinclude information pertinent to the payment transaction, e.g.,transaction amount, merchant identification, coupon data, iteminformation, etc.

QR reader module 315 may be configured to read and interpret a QR codedisplayed on communication device 110. For example, the QR reader module315 can interpret a QR code scanned off communication device 110 anddetermine the payment information relevant to the transaction (e.g., PANor token, cryptogram, etc.).

Keypad 314 may be operable to input information such as transactioninformation into access device 120. Magnetic strip reader 316 may beoperable to read information from a magnetic strip of a card such as acredit or a debit card. Output device 318 may include a display. Thedisplay may display, for example, transaction information. Networkinterface 320 may be operable to enable access device 120 to communicatewith other system entities. For example, it may enable access device 120to communicate with one or more of acquirer 130, payment processingnetwork 140, and issuer 150. Antenna 322 may be provided to enableaccess device 120 to operate remotely.

II. Transactions Incorporating QR Codes

FIG. 4 shows a flow diagram for an exemplary flow for a paymenttransaction including the use of a machine readable code, in accordancewith some embodiments of the invention. In some embodiments, thecommunication device 110 may use a mobile application 272 to generate,via QR generator module 276, a QR code based on a real primary accountnumber (PAN) with a full cryptogram and a scanned QR code that wasgenerated on an access device 120 to trigger a payment transaction. Thisallows for generation of a full cryptogram without any interaction withthe access device 120.

At step s1, upon a user indicating that he/she wishes to conduct apayment transaction at an access device 120 using a QR code, the accessdevice checkout system may begin by the access device 120 generating aQR code to trigger payment. The user may indicate his/her wishes toconduct a payment transaction by executing the mobile application 272 onthe communication device 110. The user may instruct the mobileapplication 272 to begin the payment transaction process or the mobileapplication 272 may automatically detect the presence of the accessdevice 120 (e.g., using NFC). The QR code may be generated by QRgenerator module 313 of access device 120. The generated QR code may bebased on, for example, transaction amount, a random number, optionalcoupon data, or any other variable data upon the user approaching theaccess device 120 to initiate checkout. Upon the QR generator module 313generating the appropriate QR code, the generated QR code may bedisplayed on a display of the access device 120.

At step s2, the user may scan the QR code generated by the access device120 that is displayed on a display of the access device 120, withcommunication device 110. The scanning may be accomplished via a cameraor scanner internal to communication device 110. The communicationdevice 110 may decode the information encoded in the scanned QR code viamobile application 272 interfacing with the QR reader module 274, asdescribed above. The information may include transaction amount, arandom number, optional coupon data, or any other variable data. Therandom number may be unique to each transaction and serve as a fraudprevention mechanism, described in further detail below. Thecommunication device 110 may display a confirmation for a successfulscan or an error message for an unsuccessful scan.

At step s3, the mobile application 272 running on the communicationdevice 110 may interface with the secure element 280 to obtain theuser's financial credentials 281. As described above, the financialcredentials may be securely stored within the secure element 280 on thecommunication device 110. In some embodiments, the mobile application272 may have exclusive access to the secure element 280.

At step s4, the decoded information from the scanned QR code may be usedto generate a cryptogram. That is, the cryptogram may be generated basedon the decoded transaction amount, random number, optional coupon data,or any other variable data in the QR code. The cryptogram may also begenerated using any suitable encryption algorithm including DES, tripleDES, and AES. Since the random number is uniquely generated by theaccess device 120 for each payment transaction, the cryptogram generatedby the communication device 110 may also be unique for each transaction.The cryptogram may be generated by cryptogram generation module 278 ofthe communication device 110. Accordingly, the cryptogram would bedifficult for a fraudster to duplicate because of the various data thatis uniquely generated for each transaction. Even if a fraudster were tosteal the cryptogram, any attempt by the fraudster to use the cryptogramwould likely fail as the random number that the cryptogram was generatedbased on may be different in a subsequent transaction.

In some embodiments, the cryptogram may also be generated based ongeolocation data. For example, the cryptogram can be generated based ona location where the user is conducting the payment transaction. The useof geolocation in generating the cryptogram may add yet another layer ofsecurity. If a fraudster were to steal the cryptogram, any use of thecryptogram may be unsuccessful as it will not be authenticated in alocation other than the one for which it was generated.

In some embodiments, the cryptogram may also be generated based on atimestamp of the attempted transaction. The use of a timestamp ingenerating the cryptogram may add yet another layer of security forreasons similar to those described above.

In some embodiments, the cryptogram may also be generated based ondevice specific information of the communication device 110. The use ofdevice specific information of the communication device 110 may add yetanother layer of security for reasons similar to those described above.

In some embodiments, the cryptogram may also be generated based onbiometric data of the user. For example, the user may provide athumbprint, retinal scan, voice sample, etc. to the communication device110 at the time of the transaction. The cryptogram may be generatedbased on this received biometric data. The use of biometric data uniqueto the user may add yet another layer of security for reasons similar tothose described above.

Additionally, at step s4, the communication device 110 may combine thecryptogram and the obtained financial credentials 281. The combinationmay then be encoded into a QR code generated by the communication device110. The QR code may be generated by the mobile application 272 via theQR generator module 276 of the communication device 110. The QR codegenerated by the communication device 110 may then be displayed on adisplay of the communication device 110.

At step s5, the user may point the communication device 110 at theaccess device 120 such that the access device 120 can scan the QR codegenerated by the communication device 110 in step s4. The access device120 may then scan the QR code displayed on the communication device 110using an internal camera or sensor to the access device 120. The accessdevice 120 may display a confirmation for a successful scan or an errormessage for an unsuccessful scan.

At step s6, the access device 120 may decode the scanned QR code andconvert the information within the QR code to a standard purchaseauthorization message. The purchase authorization message may include,but is not limited to, the financial credentials, cryptogram,transaction amount, coupon data, random number, etc. The standardauthorization request message may be forwarded to the acquirer 130 forstandard processing and further onward to the issuer 150 for purchaseauthorization (via the payment processor network 140) (steps s7 and s8).

By employing a secure element to store the user's financial credentials281 and using the credentials along with a combination of QR codes toregister a payment a transaction, the system described in FIG. 4 allowsfor a more secure method of using QR codes for card not present paymenttransactions. The concept of QR code generation by both thecommunication device 110 and the access device 120 allows for two-waycommunication between the two using QR codes, which is inherently moresecure than a simple one-way communication.

In some embodiments, the system described in FIG. 4 may use a remotetrusted execution environment instead of the secure element 280. Thatis, the mobile application 272 may emulate the payment card to providethe financial credentials needed to generate the QR code.

In some embodiments, the QR code can include a country code and/orcurrency code for pertaining to the transaction. In some embodiments,the QR code generated by the mobile device can include a digitalsignature of the mobile device. In some embodiments, the QR codegenerated by the mobile device can include a device fingerprint. In someembodiments, the QR code generated by the access device can include adevice fingerprint.

FIG. 5 shows a flow diagram for another exemplary flow for a paymenttransaction including the use of a machine readable code, in accordancewith some embodiments of the invention. FIG. 5 is similar to FIG. 4,however FIG. 5 illustrates the use of a cloud-based network 710 thatstores the financial credentials 612 associated with the user. Afterperforming steps s1 and s2 described in FIG. 4, in some embodiments,instead of instead of obtaining the user's financial credentials fromthe secure element 280, the communication device may obtain the user'sfinancial credentials 612 from the cloud-based network 710 (or a servercomputer in the cloud-based network 710) at step s3.

In some embodiments, the server computer in the cloud-based network 710may be associated with a digital wallet provider. Additionally, thedigital wallet provider may also be associated with the mobileapplication 272. Accordingly, the mobile application 272 may be adigital wallet application that provides a front-end for the user tointeract with the digital wallet provider. The use may enroll variouspayments cards with the digital wallet provider via the mobileapplication 272. Upon each transaction, the mobile application 272 maycommunicate with the cloud-based network 710 to obtain the financialcredentials 612 for the particular transaction. In some embodiments,various data pertaining to the cloud-based network 710 may be used togenerate the cryptogram, in addition to the data described above.

After obtaining the financial credentials 612 from the cloud-basednetwork 710, the process flow described in FIG. 5 may continue similarto the process flow described with respect to FIG. 4 (e.g., stepss4-s8).

FIG. 6A shows an access device 120 displaying a QR code 830 usable in apayment transaction, in accordance with some embodiments of theinvention. The access device 120 may include a display device 810configured to display the QR code 830 and various other prompts to theuser. As described with respect to steps s1 and s2 in FIG. 4, the accessdevice 120 may generate a QR code encoding various data associated withthe transaction, such as a transaction amount, merchant identifier,coupon data, random number, etc. Once the QR code 830 has beengenerated, the access device 120 may display the QR code 830 on thedisplay 810 along with other prompts such as the total transactionamount and a request for the user to scan the generated QR code 830 withhis/her communication device 110. Upon a successful scan of the QR 830code by the user's communication device 110, the access device 120 mayprovide a prompt to the user. For example, the display 810 of the accessdevice 120 may read, “Scan successful, waiting to scan communicationdevice generated QR code.” In some embodiments, the access device 120may receive a notification from the communication device 110 when thecommunication device 110 successfully scans the access device 120generated QR code 830. The notification may be received over anywireless transmission protocol including, but not limited to, NFC,Bluetooth, Wi-Fi, cellular, etc.

FIG. 6B shows a communication device 110 displaying a QR code 840 usablein a payment transaction, in accordance with some embodiments of theinvention. The communication device 110 may include a display 230configured to display the QR code 840 and various other prompts to theuser. As described above with respect to steps s4 and s5 in FIG. 4, theaccess device 120 may generate a QR code encoding financial credentialsassociated with the user and a cryptogram, along with elements from theQR code generated by the access device 120, including but not limitedto, the random number. Once the QR code 840 has been generated, thecommunication device 110 may display the QR code 840 on the display 230along with other prompts such as a request for the user to present thegenerated QR code 840 to the access device 120 so that the access devicemay scan the generated QR code 840. For example, the display 820 of thecommunication device may read, “Please present the code to the POSdevice.” In some embodiments, the communication device 110 may receive anotification from the access deice 120 when the access device 120successfully scans the communication device 110 generated QR code 840.The notification may be received over any wireless transmission protocolincluding, but not limited to, NFC, Bluetooth, Wi-Fi, cellular, etc.

FIG. 7 shows a flowchart 900 of an exemplary method of conducting apayment transaction using QR codes. In block 910, a first machinereadable code encoding first data generated by an access device isscanned. The first machine readable code may be a QR code. The firstdata may include, but is not limited to, at least one of a transactionamount, a random number, or coupon data. The first machine readable codemay be displayed on a display of an access device. In some embodiments,the access device may be a POS device.

In block 920, after the first machine readable code is scanned, acryptogram is generated based on the first data encoded within the firstmachine readable code. The cryptogram may be generated based on thevarious data encoded within the first machine readable code, includingthe random number. In some embodiments, the cryptogram may also begenerated based on geolocation or timestamp data.

In block 930, after generating the cryptogram, financial credentialsdata is obtained from a payment application being executed on thecommunication device. In some embodiments, the payment application maybe a digital wallet application. The financial credentials data mayreside within a secure element on the communication device or within acloud-based network. The payment application may interface with thesecure element and/or cloud-based network to obtain the financialcredentials associated with the user. Obtaining the financialcredentials data may include communicating the first data encoded withinthe first machine readable code to the payment application. In someembodiments, the financial credentials data may include a tokenassociated with a primary account number (PAN).

In block 940, after obtaining the financial credentials data, a secondmachine readable code is generated encoding second data comprising thefinancial credentials data and the cryptogram. In some embodiments, thesecond data may also include biometric data associated with the user. Insome embodiments, the second machine readable code may be a QR code.

In block 950, after generating the second machine readable code, thesecond machine readable code is displayed on a display of thecommunication device, wherein the second machine readable code isscanned by the access device. Upon scanning the second machine readablecode and authenticating the transaction, the access device may forwardthe transaction information to an issuer in the form of an authorizationrequest message for traditional payment processing.

The QR code based system as discussed with different embodimentsprovides a platform that can be leveraged by external entities (e.g.,third party wallets, e-commerce merchants, payment enablers/paymentservice providers, etc.) or internal payment processing network systemsthat have the need to use the QR codes to facilitate paymenttransactions. In embodiments of the invention, a QR can supportinteroperability and can be accepted, processed and routed by theentities within the payment system. Embodiments of the invention canhelp card issuers and merchants improve card security or enable newpayment experiences through the use of QR codes.

The various participants and elements described herein with reference toFIGS. 1, 2, and 3 may operate one or more computer apparatuses tofacilitate the functions described herein. Any of the elements in FIGS.1, 2, and 3, including any servers or databases, may use any suitablenumber of subsystems to facilitate the functions described herein.

Examples of such subsystems or components are shown in FIG. 8. Thesubsystems shown in FIG. 8 are interconnected via a system bus 1010.Additional subsystems such as a printer 1030, keyboard 1018, fixed disk1020 (or other memory comprising computer readable media), monitor 1012,which is coupled to display adapter 1014, and others are shown.Peripherals and input/output (I/O) devices, which couple to I/Ocontroller 1024 (which can be a processor or other suitable controller),can be connected to the computer system by any number of means known inthe art, such as serial port 1016. For example, serial port 1016 orexternal interface 1022 can be used to connect the computer apparatus toa wide area network such as the Internet, a mouse input device, or ascanner. The interconnection via system bus allows the central processor1028 to communicate with each subsystem and to control the execution ofinstructions from system memory 1026 or the fixed disk 1020, as well asthe exchange of information between subsystems. The system memory 1026and/or the fixed disk 1020 may embody a computer readable medium.

Any of the software components or functions described in thisapplication, may be implemented as software code to be executed by aprocessor using any suitable computer language such as, for example,Java, C++ or Perl using, for example, conventional or object-orientedtechniques. The software code may be stored as a series of instructions,or commands on a computer readable medium, such as a random accessmemory (RAM), a read only memory (ROM), a magnetic medium such as ahard-drive or a floppy disk, or an optical medium such as a CD-ROM. Anysuch computer readable medium may reside on or within a singlecomputational apparatus, and may be present on or within differentcomputational apparatuses within a system or network.

The above description is illustrative and is not restrictive. Manyvariations of the invention will become apparent to those skilled in theart upon review of the disclosure. The scope of the invention should,therefore, be determined not with reference to the above description,but instead should be determined with reference to the pending claimsalong with their full scope or equivalents.

One or more features from any embodiment may be combined with one ormore features of any other embodiment without departing from the scopeof the invention.

A recitation of “a”, “an” or “the” is intended to mean “one or more”unless specifically indicated to the contrary.

All patents, patent applications, publications, and descriptionsmentioned above are herein incorporated by reference in their entiretyfor all purposes. None is admitted to be prior art.

1.-20. (canceled)
 21. A method for facilitating a transaction,comprising: generating and displaying, via an access device to acommunication device, a first machine readable code encoding first datato form encoded information, wherein the first data comprises at least arandom number unique to the transaction and a transaction amount for thetransaction, wherein the communication device (i) decodes the encodedinformation to obtain the random number unique to the transaction andthe transaction amount, (ii) generates a cryptogram by encrypting therandom number, the transaction amount, and device specific informationfor the communication device with an encryption algorithm, (iv) obtainsfinancial credentials from a payment application being executed on thecommunication device, and (v) transmits second data comprising thefinancial credentials and the cryptogram to the access device;receiving, by the access device, the second data comprising thefinancial credentials and the cryptogram; and generating and sending, bythe access device, an authorization request message including at leastthe financial credentials, the random number, and the cryptogram to anauthorizing computer for authorization.
 22. The method of claim 21wherein the first data further comprises coupon data.
 23. The method ofclaim 21, wherein the authorization request message further comprises alocation of a merchant operating the access device.
 24. The method ofclaim 21, wherein obtaining the financial credentials from the paymentapplication comprises communicating the first data encoded within thefirst machine readable code to the payment application and obtaining thefinancial credentials from a secure element within the communicationdevice.
 25. The method of claim 21, wherein the financial credentialscomprise a token, wherein the token is associated with a primary accountnumber (PAN).
 26. The method of claim 21, wherein obtaining thefinancial credentials comprises obtaining the financial credentials froma cloud-based network.
 27. The method of claim 21, wherein the accessdevice is a point-of-sale (POS) device.
 28. The method of claim 21wherein the payment application is a digital wallet applicationassociated with a digital wallet provider.
 29. The method of claim 21,wherein the communication device is a mobile phone.
 30. The method ofclaim 29, wherein the second data further comprises biometric dataassociated with a user of the communication device.
 31. An access devicecomprising a processor, and a computer readable medium coupled theprocessor, the computer readable medium comprising code, executable bythe processor, for implementing a method comprising: generating anddisplaying, to a communication device, a first machine readable codeencoding first data to form encoded information, wherein the first datacomprises at least a random number unique to a transaction and atransaction amount for the transaction, wherein the communication device(i) decodes the encoded information to obtain the random number uniqueto the transaction and the transaction amount, (ii) generates acryptogram by encrypting the random number, the transaction amount, anddevice specific information for the communication device, (iv) obtainsfinancial credentials from a payment application being executed on thecommunication device, and (v) transmits second data comprising thefinancial credentials and the cryptogram to the access device; receivingthe second data comprising the financial credentials and the cryptogram;and generating and sending an authorization request message including atleast the financial credentials, the random number, and the cryptogramto an authorizing computer for authorization.
 32. The access device ofclaim 31 wherein the first data further comprises coupon data.
 33. Theaccess device of claim 31, wherein the authorization request messagefurther comprises a location of a merchant operating the access device.34. The access device of claim 31, wherein obtaining the financialcredentials from the payment application comprises communicating thefirst data encoded within the first machine readable code to the paymentapplication and obtaining the financial credentials from a secureelement within the communication device.
 35. The access device of claim31, wherein the financial credentials comprise a token, wherein thetoken is associated with a primary account number (PAN).
 36. The accessdevice of claim 31, wherein obtaining the financial credentialscomprises obtaining the financial credentials from a cloud-basednetwork.
 37. The access device of claim 31, wherein the access device isa point-of-sale (POS) device.
 38. The access device of claim 31 whereinthe payment application is a digital wallet application associated witha digital wallet provider.
 39. The access device of claim 31, whereinthe communication device is a mobile phone.
 40. The access device ofclaim 39, wherein the second data further comprises biometric dataassociated with a user of the communication device.